“Motorola Inc. announced plans to separate its struggling handset business from other operations Wednesday, forming two separate publicly traded companies after months of agitation from frustrated investors,” The Associated Press reports.

“The suburban Chicago-based cell phone maker has been under pressure from billionaire investor Carl Icahn for changes meant revitalize its cell-phone business. The cell phone unit has seen its sales and stock price plummet with the company unable to produce second act to the once-popular Razr phone,” AP reports.

“Motorola said the handset business will operate separately from another company that will encompass its home and networks business, which sells TV set-top boxes and modems, and its enterprise mobility solutions, which sells computing and communications equipment to businesses,” AP reports.

Full article here.

Motorola’s press release is here.

May 10, 2007: Motorola Chairman (until May) and then-CEO Ed Zander said his company was ready for competition from Apple’s iPhone, due out the following month. “How do you deal with that?” Zander was asked at the Software 2007 conference Wednesday in Santa Clara, Calif. Zander quickly retorted, “How do they deal with us?”IDG News Service